Analysis of top and bottom profit strategies

First, the concept of multi-head top and bottom is described

(1) Long bottom: The current bottom is greater than the previous bottom.

(2) Overhead: The current top is larger than the previous top.

(3) Strong long bottom: The current bottom is greater than the previous bottom and greater than the previous top.

(4) Weak long bottom: The current top is larger than the previous bottom, but smaller than the previous top.

Second, the concept description of short top and bottom

(1) Short bottom: The current bottom is smaller than the previous bottom.

(2) Empty head: The current top is smaller than the previous top.

(3) Strong Empty Head: The current top is smaller than the previous top and smaller than the previous bottom.

(4) Weakness: The current top is smaller than the previous top, but larger than the previous bottom.

III. Description of the concept of horizontal top and bottom

(1) Horizontal top: The current top is equal to or similar to the previous top.

(2) Horizontal bottom: The current bottom is equal to or similar to the previous bottom.

It should be pointed out that the top-bottom pattern and related descriptions are relatively common and basic concepts, which are of great significance for using the top-bottom rule to analyze the trend structure. In addition, it should be noted that the top-bottom is an important part of the technical system of market structure theory and has strong independence. However, when conducting trend structure analysis, this rule should not be used in isolation to complete all structural judgments, but should be organically combined with other technical rules for comprehensive research and judgment.

How can we seize the opportunity when the top and bottom are formed? The basic idea is to look at the bottom and the top as a supplement; to look at the top and the bottom as a supplementShield BoTake the platform as an example. Many traders analyze intraday movements according to these rules.

(1) In a long trend structure, a long bottom should be used as the primary signal and basis for the establishment of a long trend. When a long bottom is formed, it often means the start of a long trend.

(2) In the long trend structure, the long head should be used as an important signal and reference for the continuation of the long trend. When the long head is established, it can be preliminarily judged that the long head trend will continue. On the contrary, if the long head is not established, it may indicate the occurrence of a long trend.

(3) In the structure of a short trend, a short head should be used as the primary signal and basis for the establishment of a short trend. When a short head is formed, it means the opening of a short trend.

(4) In the bearish trend structure, the bearish bottom should be used as an important signal and reference for the continuation of the bearish trend. When the bearish bottom is established, it can be initially confirmed that the bearish trend will continue. On the contrary, if the bearish bottom fails to establish, it may indicate the occurrence of a bearish turn.

(5) The formation of the top-bottom pattern is characterized by an obvious inflexion or turning point in the opposite band.